Still plenty to like in this market
Tech may be spoiling the party, but old standbys like insurers, banks, retail and oil are holding up nicely.
To listen to the dialogue is to think that somehow the world came to an end because of earnings last week. But I think that's in large part because of the companies that caught our eyes more than the companies that actually reported.
I'm not disputing some high-profile misses. Google (GOOG) had given no sign that it was struggling with mobile and mobile advertisers. None. Its acolytes, people close to the company, gave us no insight whatsoever that it was meeting with resistance and that advertisers are balking even for mobile search ads.
IBM (IBM) did deliver in the same fashion that it has delivered since $125. I am not kidding. Go back and look. But it gave soft linear commentary, so that doomed the stock.
Chipotle (CMG) is mortal. It's been mortal. The stock price is adjusting for it.
These are all high-profile names -- names that are at the tip of every investor's tongue.
Yet they do not define what's been happening in October. In fact, any perusal of the charts shows many sanguine lessons, with whole groups standing out. They just happen to be very boring groups.
First, there are the insurers, and they are a marvel. Travelers (TRV) put it into focus, but we have major price premium increases kicking in across the board. It finally might be time to really get in big for Berkshire Hathaway (BRK.A/BRK.B). I wish Robert Benmosche had said nothing about the government and AIG (AIG), because that stock has been powering higher on a belief that the government won't be selling anytime soon because of a lockup that doesn't expire until after the election. Major property and casualty players such as Chubb (CB) are acting extraordinarily well.
Oil and gas stocks have been tearing of late. Just an amazing move. The charts for drillers and oils are quite firm and weren't dinged at all last week.
Banks look to be stabilizing and ready to go higher on any notice.
Retail is split but not all bad by any means.
Even the industrials are not uniformly bad. I am not going to take my cue from Parker-Hannifin (PH), as that company has missed too often. General Electric (GE) simply wasn't nearly as bad as the commentary.
Which leaves tech. The sector, which is 20% of the S&P 500 ($INX) including 5% Apple (AAPL), is way too big compared with its fundamental secular decline. We are seeing a wholesale revaluation of that group lower, and that's gut-wrenching, because it's just not finished.
And if Apple reports a good number and it lifts the group, that's one more chance to slam it, because the zero-sum is still very much in force.
Just think of it like this: Do you care more about Chipotle than Chubb? Of course.
But should you?
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long IBM, AIG, GE and AAPL.
More from TheStreet.com
Hey Jim... did you read the article about Wal-Mart being sued for attempting slave labor on temps? It says... the business created by a good American, who died and left it to relative pariah whose worth is equal to 130 MILLION Americans... demands temps to come in early, stay late and work through lunch breaks. Meanwhile, Walton inheritors literally can wipe their butts with $100 bills and it wouldn't put a dent in their wealth.
Why aren't you writing Reality articles about pieces of shift like this? You think your rally has legs. Not. WHEN the Waltons are broke and begging, I thought it would be nice to make an arbitrtation board out of those former temps and let them have at it.
How about todays` comeback!That`s one of the reasons I love this country,despite the
negative far right.Viva Obama!
and now this scam artist has his partner stephanie link on cnbc spewing
his crap............these 2 should be in jail
Instead of putting 2 trillion extra into defense over the next 10 years, try expanding the natural gas infrastructure to reach 98% of US homes in the lower 48 and to develop cars that run on natural gas. We would THEN be energy independent and the good news is no new drilling necessary, we already have it in reserve. IF what they say in those ads is true Bye bye OPEC. Oil prices would collapse---- gee I wonder who would be against that happening. Exxon Mobil shareholders perhaps who have more oil than natural gas?
Fedx is hiring 20,000 workers, furthur evidence of how the economy is going
Gas prices dropping like a rock JUST before the election. GOTTA be a conspiracy say Welch! After all the ignorant knee jerks among us gauge the health of the economy by what gas prices are doing at any given moment. So NOW things are swell!
Cramer, why don't you un-load and tell us the thruth? This is getting worst by the day: US and Europe economies are bad, everyother country are fighting with each other, unemployeement everywhere, etc (too long to list)
The faster the correction; the better the market! Let it be!
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
John Stumpf acknowledges that growth has been slow, but he says he's still optimistic.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.